Ethereum: Why only patience may cut it for ETH holders
- Overcoming the $1,960 resistance could lead to a surge above $2,000.
- The OBV reflects a higher volume which could trigger an uptick.
For Ethereum [ETH], the last seven days have been impressive, thanks to a 10.24% price increase. However, the double-digit hike has stalled, as ETH dropped to $1,780 in the last 24 hours. Regardless of the decline, the broader market is still positive that the coin will find its way to $2,000 very soon.
How much are 1,10,100 ETHs worth today?
ETH needs to break down the obstacle
According to Ali Martinez, an analyst, ETH needs to overcome the huge supply at $1,960 before it can break out. Martinez noted that it was important to break down the wall at the said value because of the number of coins bought at the price.
The analyst noted that about 33 million ETH were accumulated by 1.14 million addresses at $1,960. Because of the buying concentration at this point, ETH has formed a resistance there.
Wen #Ethereum break out?
— Ali (@ali_charts) October 26, 2023
Should more trading activity surpass the volume at the aforementioned price level, then ETH may push toward $2,000. Otherwise, a notable correction, possibly below $1,700, could be on the cards.
Also, ETH might need Bitcoin [BTC] dominance to reduce even though it has relatively followed the king coin’s price action lately. At press time, Bitcoin’s dominance was 52.43%. This implies that BTC’s market cap compared to Ethereum, and other altcoins in the market, has been higher.
A rising open interest follows a volatile coin
One metric that gives an idea of ETH’s price potential over the next few days is the open interest. With respect to the price action, a high open interest could provide strength. On the other hand, a falling open interest means that price movement is weak
At the time of writing, ETH’s open interest was $6 billion. Rising open interest on a declining price implies that the coin value may continue to decrease. However, if the open interest maintains its increase when ETH begins to rise, then the altcoin may break the resistance and rise above $2,000.
At the time of writing, ETH’s bullish structure was still in place. However, the ETH/USD daily timeframe showed that the cryptocurrency was overbought, despite high volatility. This assertion was obtained from the Bollinger Bands (BB).
The upper band of the BB had touched ETH at $1,805, triggering a reversal in the price. As it stands, there is still a chance for ETH to fall lower than $,1786. However, the extreme volatility indicated by BB showed that there might be significant price fluctuations in the short term.
Read Ethereum’s [ETH] Price Prediction 2023-2024
So, a jump to $2,000 should not be ruled out as long as buying pressure remains present. This possibility was also reinforced by the On Balance Volume (OBV).
At press time, the OBV had risen to 24.33 million. This reflects positive volume that could later foreshadow higher prices.